Diamond and diamond play BDI Mining is evaluating 'funding options' after expanding output and resources in Papua New Guinea, having lost £1.7 million last year.

AIM-quoted BDI, now headed by Lonrho Africa's entrepreneurial Australian boss David Lenigas, lost £1.7 million in 2006. The company generated £5.5 million revenues in 2006 from its Cempaka diamond mine in Indonesia, which produced 50,821 carats of high-value stones, including a rare blue diamond, christened the 'Chelsea Blue'.

BDI also continued drilling at its Woodlark Island gold project in Papua New Guinea, where it established a resource of more than one million ounces. Lenigas says the company is evaluating a further drilling programme to up the open-pit element in the resource, thus enhancing its economic 'robustness'.

Market speculators wonder whether BDI's funding options could involve a partner or even an offer. At 34p, up 1.25p today, the shares have risen 72 per cent since Growth Company Investor's recommendation in November and could have some speculative mileage yet.